Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,095,000 each month plus variable expenses of $4.00 per carton of calendars. Of the variable expense, 73% is cost of goods sold, while the remaining 27% relates to variable operating expenses. The company sells each carton of calendars for $12.00 Read the requirements Requirement 1. Compute the number of cartons of calendars that Spirit Calendars must sell each month to break even. Begin by determining the basic income statement equation Sales revenue Variable expenses Fixed expenses Operating income Using the basic income statement equation you determined above solve for the number of cartons to break even The breakeven sales is cartons iRequirements 1. Compute the number of cartons of calendars that Spirit Calendars must sell each month to break even. 2. Compute the dollar amount of monthly sales that the company needs in order to earn $312,000 in operating income (round the contribution margin ratio to 3. Prepare the company's contribution margin income statement for June for 4. What is June's margin of safety (in dollars)? What is the operating leverage 5. By what percentage will operating income change if July's sales volume is two decimal places) sales of 450,000 cartons of calendars factor at this level of sales? 10% higher? Prove your answer Print Done Enter any number in the edit fields and then click Check